Ceres Power price target lifted to 970p on £100m SOFC royalties forecast
UBS raised its Ceres Power price target to 970p from 570p, boosting the stock 17% to 779.3p as projected SOFC royalties exceed £100m with 1.8 GW of shipments by 2030. The bank lifted 2027 EBITDA forecasts by 31% and forecasts positive free cash flow through 2028.
1. Price Target Hike and Share Reaction
UBS raised its price target for Ceres Power to 970p from 570p and reiterated a buy rating, driving shares up 17% to 779.3p.
2. Royalty and Shipment Projections
The bank increased its forecast for cumulative SOFC shipments by 60% to 1.8 GW by 2030, anticipating annual royalty income above £100m that year.
3. Licensee Capacity Upgrades
Delta Electronics’ licensed capacity is now expected to reach 900 MW by 2030 (up from 515 MW), while Weichai Power is forecast to hit 1 GW, further boosting royalty upside.
4. EBITDA Inflexion and Cash Flow Outlook
UBS views 2026 as the EBITDA inflexion year, with a 20% reduction in operating costs after restructuring and positive free cash flow projected from 2026 through 2028.